Meanwhile Group, through its subsidiary Meanwhile Advisors, has announced the introduction of a new Bitcoin investment fund, the Meanwhile BTC Private Credit Fund LP. The announcement came in a press release dated December 7. The fund, which seeks to raise $100 million, offers a novel approach to Bitcoin investment, providing a 5% yield in Bitcoin.
Sam Altman and gradient ventures back high-profile startup
The Meanwhile BTC Private Credit Fund LP stands out for its unique strategy. It aims to increase investors’ Bitcoin holdings without additional principal investment. This is achieved by converting investors’ U.S. dollars into Bitcoin and lending them out to generate a return. The fund’s conservative lending approach focuses on institutional borrowers, ensuring higher safety and creditworthiness. This strategy contrasts markedly with the riskier approaches of some retail-centric lending platforms.
Zac Townsend, co-founder and CEO of Meanwhile Group, emphasized the fund’s role in fostering a robust Bitcoin economy. The fund aims to provide a stable avenue for Bitcoin investment by bridging fiat currencies and cryptocurrencies through solid financial products. Thanks to its closed-end structure, Townsend highlighted the fund’s safeguard against insolvency risks.
The startup has garnered significant backing from high-profile investors, including Sam Altman and Gradient Ventures. This support was evident in its recent seed funding round, which raised $20 million. The involvement of such renowned investors underscores the fund’s potential in the rapidly evolving digital asset economy.
The fund’s launch coincides with growing anticipation for a U.S. spot Bitcoin ETF. Industry giants like BlackRock and Fidelity Investments have filed applications for such ETFs, which are expected to increase institutional interest in Bitcoin. Townsend believes that the approval of these ETFs would complement the Meanwhile fund by boosting Bitcoin’s value and the attractiveness of its Bitcoin-denominated returns.
The Meanwhile BTC Private Credit Fund LP is characterized by a minimum investment requirement of $250,000 and a seven-year term. This duration is divided into three-year investment and four harvest periods. During the harvest period, returns are distributed to investors.
The fund also features a unique fee structure. It charges a 2% management fee and a 20% carried interest fee, both in Bitcoin. This approach aligns the fund’s success with the appreciation of Bitcoin rather than fiat currency.
Enhancing institutional Bitcoin exposure
As the digital asset economy grows, institutional investors increasingly seek innovative ways to activate their exposure to this asset class. Townsend noted that Meanwhile is well-positioned to deliver this strategy, given its expertise within the insurance business. This expertise is pivotal in navigating the complexities and opportunities in the digital asset space.
The Securities and Exchange Commission (SEC) is expected to approve the applications for a U.S. spot Bitcoin ETF in the coming weeks. Discussions between the regulator and the applicants have reportedly reached an advanced stage as of December 7. The approval of these ETFs is anticipated to impact the institutional investment landscape for Bitcoin significantly.
The Meanwhile BTC Private Credit Fund LP represents a significant development in Bitcoin investment. With the backing of prominent investors like Sam Altman and Gradient Ventures, and a strategy focused on safety and growth, the fund is poised to offer a unique opportunity for investors looking to expand their Bitcoin holdings securely and innovatively.